“Prolonged depressed prices and shifts in the energy industry have led us to this decision,” Anuar Taib, chairman of the board of the Pacific Northwest LNG project, said in a statement.

Petronas, as the state-owned company is known, won Canadian federal government approval for the project in September following more than three years of regulatory reviews and strident opposition from environmentalists, scientists and indigenous communities. The project also faced economic headwinds, with 18 gas export proposals in the province in limbo amid a global glut and plunging prices.

The long-anticipated decision by Petronas delivers a major blow to plans pushed by the previous Liberal-led government of British Columbia to develop an LNG industry in the Pacific Coast province for export to Asia. It comes shortly after Premier John Horgan took office backed by his ally, Green Party Leader Andrew Weaver, who has mocked the LNG industry as “nonsense” and a “colossal failure.”

Petronas and its partners remain committed to developing their natural gas assets in Canada and “will continue to explore all options as part of its long-term investment strategy,” according to the statement.